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India wants to return stranded vessels before sending any more to the Gulf
A senior government official stated on Thursday that India wants to ensure the return of its ships stranded at the Gulf before sending any vessel back to load fuel. Mukesh Mangal is the additional secretary in India's Ministry of Ports, Shipping and Waterways. He said that India wants to remove all its ships from the Strait of Hormuz. He said that India would send ships to the west of?Strait of Hormuz 'whenever conditions are conducive'. Mangal, India's shipping ministry, said at a press conference that the ministry is working with the foreign minister to coordinate and decide on whether or not to send back vessels after all stranded boats return. According to him, 13 Indian flagged vessels and 1 Indian owned vessel remain stuck on the western side of the Strait. Since the Strait was effectively closed due to conflict that began on February 28, U.S. and Israeli?strikes against Iran, thirteen vessels with energy cargoes - mostly liquefied petrol gas (LPG) - have transited the Strait. Earlier, India imported?more that 40% of its crude oils and 90% of its LPG (used for cooking) from the Middle East via the Strait of Hormuz. India is now facing one of its worst gas supply disruptions for decades. (Reporting from Saurabh Sharma in New Delhi and Nidhi verma; editing by Alexander Smith.)
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UK closes tax loophole targeting oil and gas companies' profits
British Finance Minister Rachel Reeves said on Thursday that she would prevent'multinationals', such as oil and gas companies, from reducing their tax liabilities by using corporate structures that involve foreign branches. Reeves announced the change in a speech that set out a number of measures designed to assist British consumers. He said the changes would fund free bus fare for children, tariff reductions on food, and a tax exemption for family attractions. She said that the reform would prevent British profits from being shielded from tax by losses attributable foreign branches. Reeves stated that closing the loophole would raise hundreds of millions of pounds each year. Reeves said that some oil and gas groups operating overseas through foreign subsidiaries have structured their tax affairs so they pay very little or no corporation taxes on their UK energy trading profit. She said that today, Britain would stop?that practice.' This move will bring Britain into line with other countries who treat foreign profits the same way. The UK has one of the most strict 'tax regimes' for oil and gas producers. This includes a 38% windfall tax when prices are above a government-set threshold, increasing the overall tax burden to 78%. Shell, BP, Ithaca Energy and Harbour Energy are among the companies that have not responded to requests for comment. (Reporting and additional reporting by Shadia Naralla and Stephanie Kelly; writing by William James, Sam Tabahriti and Alex Richardson, editing by Alex Richardson).
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Maguire: Texas cuts gas consumption as ERCOT clean energy momentum continues to grow
As clean energy sources continue to supplant fossil fuels in the U.S.'s top oil and gas hub, the share of natural gases within the state of Texas's power generation mix has dropped to multi-year lows this year. Data from ERCOT's power system and the U.S. Energy Information Administration show that natural gas-fired power plants have generated less than 35 percent of the total electricity supplied by the?utility in 2026. This gas share is up from over 40% two years ago and shows the rapid growth of clean energy in the biggest power producing state in the nation. RENEWABLES RISE The main driver for the growth of ERCOT's clean energy has been an 11% increase in the combined output of Texas's wind and solar farms from January 1 to May 19, compared with the same period in the year 2025. The total?clean energy generation this year up to May 19 has been 93.3 megawatt hours (MWh), an increase of 8% compared to the same period in 2025. ERCOT data, compiled by EIA, shows that solar?power production has increased 27% to 27 million MWh. Wind output is up 5% at nearly 51 millionMWh. The growth in renewables has helped to offset the year-to date declines in nuclear and hydropower output. These accounted for approximately 8.8% and 0.1% respectively of ERCOT’s total mix this year. The record clean power generation also helped boost total power supply by 2% compared to a year earlier, to all-time heights of 174,000,000 MWh. This ensures that Texas' overall power supply continues to grow in tandem with the state's total needs for energy. FOSSIL MILESTONE Clean power through ERCOT's power system allows producers to reduce their production of gas and coal-fired plants until 2026. Total gas-fired production dropped 3% since the same period of 2025, to its lowest level since 2023. Coal-fired production dropped by 8% and reached 21 million MWh, the lowest level since 2024. Clean power has now surpassed fossil fuels in ERCOT's power mix for the very first time. Clean power generated nearly 54% share of the total generation from January 1 to May 19. Fossil fuels had a share of just 46%. The rapid shift towards cleaner power generation in Texas over the past decade is a testament to the pace of energy transition. The production of gas-fired electricity is expected to increase steadily in the summer, to meet increased demand for air conditioners when ERCOT’s total consumption of electricity reaches its annual peak. The rapid deployment of battery storage to store excess solar power and discharge it later is also expected to extend solar's contribution into the evening. This suggests that ERCOT is likely to continue to achieve additional clean energy milestones by 2026, keeping Texas at the forefront of the power system energy transformation efforts in the nation. These are the opinions of a columnist, who is also referred to as 'the author. You like this column? Check out Open Interest, your new essential source for global financial commentary. Follow ROI on LinkedIn, X and X. Listen to the Morning Bid podcast daily on Apple, Spotify or the app. Subscribe to the Morning Bid podcast and hear journalists discussing the latest news in finance and markets 7 days a weeks.
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Document shows that Vitol is moving to open a fuel terminal in Mexico years after the bribery and corruption scandal.
According to two people with first-hand knowledge and an internal document, Vitol is one of the largest commodities traders in the world. It has held discussions with service providers, and it's now seeking permits to run the Rio Bravo fuel storage terminal, which was built six years ago and unused, but left idle. The Geneva-based company's plan to run the terminal shows its desire to rebuild its reputation in Mexico following a scandal over bribery. The move coincides with the global scramble to secure energy infrastructure during Iran's war. This has thrown supply chains into chaos. Vitol would be one of only a few foreign companies that are allowed to operate major petroleum infrastructures in Mexico. The state energy company Pemex dominates this industry, from production, refining, and distribution. Vitol has sought third-party services for testing, certification, and documentation of its terminal operations in the last few months, according to sources and a document detailing the next steps. Before it can apply for permits from the Mexican Energy Ministry to start terminal operations, it must first have contracts with independent service provider. Vitol refused to comment. The ministry didn't respond to an inquiry for comment. Sources who asked to remain anonymous due to the commercial sensitive nature of their information said Vitol had spoken with Mexican officials regarding its plan. The talks have not progressed far enough to be able to tell how far they are. Filings with the regulator show that the terminal in Matamoros (Tamaulipas), on the U.S.Mexico border has not operated since the construction was completed in 2020. Tariff Advantage The terminal will receive fuel from a port in Brownsville, Texas via a pipeline that runs 10.5 kilometers (6.5 miles) across the border. One of the sources involved in the efforts to open this terminal said that the terminal's connection to the pipeline allows it to benefit from fixed tariff rates for the pipeline and avoid the increase in seaborne freight prices due to the Iran War. A document relating to this terminal revealed that the Rio Bravo 'terminal', which has a capacity of 270,000 barrels of gasoline and diesel, is made up of 12 tanks for storage and distribution. Vitol would gain a foothold on the Mexican downstream market with its opening. The source who worked with the trader for many years in Mexico said that Vitol had to offer Pemex the terminal. Pemex declined to comment. Vitol's history in Mexico is not a good one. In December 2020 it admitted to paying off officials in Ecuador Mexico and Brazil. After a U.S. probe into corruption in Brazil?Ecuador?and Mexico, its U.S.-based subsidiary has agreed to pay $164m as part of an agreement deferring prosecution. In March 2021 PMI, Pemex’s trading arm, announced that it had terminated its commercial relationship after Vitol admitted to paying bribes in order to maintain business in Mexico.
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Kyiv reports that Ukrainian drones have struck Russia's Syzran refinery.
Ukrainian military and President Volodymyr Zelenskiy announced on Thursday that drones had struck Rosneft's Syzran oil refining plant in the?Samara area overnight. Zelenskiy, a Telegram user, said: "Another Ukrainian sanction against Russian oil refinery - we will continue this line of action." "This time, it was Syzran oil refining -?more than 800 km away from our borders." Zelenskiy uploaded footage of "a fire and smoke" billowing into the skies. The local governor confirmed that two?people died in a drone strike on Syzran, in the Samara region. He did not mention whether or not any?infrastructure had been damaged. Ukraine's Unmanned Systems Forces stated that a large fire was caused at the?refinery. Its annual processing capacity is between 7 and 8.9 million tons of crude oil. The commander of Ukrainian drone forces Robert?Brovdi said that it was the '11th Russian oil refinery' targeted by Ukraine in May.
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Gazprom shares drop on lack of dividends and pipeline to China
Gazprom shares fell on Thursday, despite the announcement that they would not be paying a dividend for '2025' results. They were also impacted by Russia's inability to reach a deal with China on a new pipeline. The shares of Russia's biggest natural gas producer fell almost 1% in early trade at the Moscow stock exchange, continuing the previous day's decline of 3.5%. "Yesterday the Moscow Exchange Index fell?by 1.2 percent, unable withstand a?double disappointment: reports from China regarding the 'lack of clarity about the 'timeframe for implementing the Power of Siberia?2 project and Gazprom refusing to pay dividends in 2025," Sinara Investbank stated in a report. Gazprom’s capitalisation is now only 2.8 trillion rubles ($40 billion), far less than the $1 trillion that was promised by management back in 2008. Since the Russian invasion of Ukraine in 2022, which shattered trade and political relations with Europe, the company has lost lucrative sales to Europe. The Russian President Vladimir Putin met China's Xi Jinping on Wednesday in Beijing, but they failed to make any progress regarding the?planned Power of Siberia 2?pipeline?which would have allowed Russia to double its natural-gas exports to China. $1 = 70.8000 Rubels (Reporting and Editing by David Goodman)
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EasyJet's outlook is uncertain as fuel prices rise and bookings decline
EasyJet, a British budget airline, reported a loss of £552 million ($741.39 millions) in the first half on Thursday. However the outlook for the full year remains uncertain due to the Iran War driving up fuel prices and bookings slipping during the summer peak season. The warning comes at a time when the Iran conflict is continuing to "disrupt" global aviation. Jet fuel prices have risen by more than 80% in the last few months, forcing airlines to raise fares or cut capacity, and even absorb margin pressure, as flow through the Strait of Hormuz has been constrained. In recent weeks, European airlines have reduced their profit expectations as fuel prices rise due to the possibility of a prolonged war and as hedges expire. Easyjet's 552 million-pound first-half loss was in line with the 540 to 560 million-pound loss that it warned about in April. EasyJet's Chief Executive Kentonjarvis stated that "our strategy is clear" - we will bounce back this year from the Middle East related setbacks through accelerated upgrades, disciplined growth and continued expansion of easyJet Holidays. The FUEL COST SURGE Tests Outlook Fuel costs were flagged by analysts as a "major risk". This is where things are dicey. The 72% hedge of $726 provides some protection but not immunity. EasyJet's spot price is $1,350, and every $100 change in the fuel cost amounts to approximately PS35m. Duncan Ferris, an investment writer for Freetrade, wrote in a report that EasyJet was "a little exposed". The second-half bookings accounted for 58%, a sign of a change in consumer behavior as travellers choose to book nearer their departure date and select destinations closer to home. In-month bookings were strong on an annual basis. This indicates a continuing shift towards later booking patterns. It has already started'reallocating capacity towards domestic and city routes' to respond to the weaker demand for long-haul destinations in eastern Mediterranean. The airline also plans to launch in 2027 a loyalty program aimed at retaining customers.
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EasyJet's losses are in line with predictions, and they signal continued Iran War pressure
The 'Iran War' has continued to impact?jet fuel prices and consumer bookings as we head into the crucial summer season. The war has impacted the global aviation industry, forcing airlines to increase fares or reduce capacity, as well as causing jet fuel prices to rise by more than 80%. Easyjet's April-September bookings accounted for 77% of the total at this point in time, a year earlier. Easyjet's bookings for April-September were 77% sold at the same point last year.
UAE's largest oil company says that the full flow of Hormuz will not be achieved until the first half 2027.
The head of ADNOC, the state oil company of the United Arab Emirates, said that full oil flow through the Strait of Hormuz would not be restored 'before the first or the second quarter of 2027', even if Middle East conflict ended now. Top industry executives have a pessimistic outlook, which highlights the long-term economic impact of Iran's war. The International Energy Agency calls the crisis the biggest ever because the strait is almost closed. Iran has de facto taken control of the waterway that is a chokepoint to about a fifth the world's supply of oil. Energy prices have risen, which has increased inflation and raised fears of a recession. Even if the conflict ended tomorrow, it would take four months for energy flows to return to pre-conflict levels. Full flows won't be restored until at least the second quarter of 2027.
JABER CALLS HORMUZ BLOCKADE A 'DANGEROUS PRECEEDENT'
Aramco's chief executive, Amin Nasser of Saudi Arabia, warned that the oil market could not recover until the year 2027, if current conditions continue through mid-June. Reports claim that Iran is consolidating control of the strait through checkpoints and vetting, as well as sometimes by charging fees. After the U.S. and Israeli assault on Iran, which began February 28, Tehran began to attack vessels in the strait as a way to impose a "de facto" blockade.
Iran has since expanded its definition of a waterway to include UAE's Gulf of Oman coast just outside the strait. This has become a lifeline for UAE. The crude pipeline, which ends in the port of Fujairah on this coast, has "kept Emirati crude flowing into markets."
"This is more than an economic issue. This is a very dangerous precedent. "Once you accept the idea that one country can take over the most important waterway in the world, we've lost freedom of navigation," said Jaber.
"If we do not defend this principle now, we will spend next decade defending against the consequences."
Jaber noted that the conflict had highlighted supply chain fragility. He said fuel prices were up by 30%, fertilisers prices had risen by 50%, and airfares have increased a quarter. He called for increased investment to 'enhance global energy resilience.
He said: "Every farm, factory, and family pays the price. The most vulnerable are the ones that end up bearing the greatest burden."
Nearly 80 countries have taken urgent measures to support their economies just 80 days after the start of this conflict.
(source: Reuters)